This includes a fourth quarter 2010 profit of $ 64.4 million, a marked improvement over the $ 17.1 million net profit achieved in the same quarter of 2009.
The bank also reported improvement in asset quality levels resulting in a lower non-performing loan ratio of 2.4% at 31 December 2010 (31 December 2009: 2.8%) and lower impairment provisions of $151.7 million as compared to $228.1 million in 2009.
“These results were primarily delivered through a structured build up of risk assets with solid interest margins leading to a nine per cent growth in the net interest income. The group also benefited from enhanced cross border synergies on the commercial and private banking fronts and from a 26.5 per cent higher share of profits from managed associates during the year,” the bank in a statement said.
The basic and dilutive earnings per ordinary share in 2010 were $5.4 cents, an increase over the 2009 level of $4.2$ cents. The board of directors recommends a cash dividend of $2.5 cents per share. (2009: $2 cents)
The group’s resultant return on average equity for 2010 was 12%, compared to the 9.6% achieved in 2009. The return on average assets also improved from 0.9% for 2009 to 1.2% for 2010.
The group’s total assets grew by 12.2%, reaching $26.5 billion from $23.6 billion at 31 December 2009, with the loans and advances portfolio registering an increase of 8.9% to $14.5 billion (31 December 2009: $13.3 billion).
“This increase was achieved with a focus on portfolio diversification and on prudent lending criteria. The credit growth was funded by a 12% growth in customer deposits to reach $14.8 billion (31 December 2009: $13.2 billion). The bank also improved its funding maturity profile by elongating the majority of its $800 million term debt maturing in October 2011 and through securing a number of bi-lateral financing arrangements,” the statement added.
“2010 hopefully marks the beginning of a sustainable turnaround in AUB’s financial performance. The future shows a number of improving trends and we are optimistic that AUB can continue to build on its organic and inorganic strategies going forward in a prudent manner”, said Fahad Al-Rajaan, Chairman, AUB.
“The re-affirmation of AUB credit ratings as A- (Stable) by S&P and Fitch as well as A (Stable) by Capital Intelligence bears testament to AUB’s strong underlying business fundamentals and effective control framework,” added Al-Rajaan.